Rangatira 1H profit falls 39%, cites Contract Resources

Nov. 28
(BusinessDesk) - Rangatira, the Wellington-based investor
that is adding the Rainbow’s End theme park to its
portfolio, reported a 39 percent decline in first-half
earnings, reflecting the ‘lumpy’ timing of work at its
half-owned Contract Resources.

Profit fell to $3 million
in the six months ended Sept. 30, from $4.4 million a year
earlier, the company said in a statement. It kept the
interim dividend payment unchanged at 18 cents a share

The
company said full-year operating earnings would rise between
10 percent and 20 percent.

“The slower first half
largely reflected phasing of project work in one of our
major investments, Contract Resources,” said chairman
Murray Gough.

Contract Resources is a specialised
engineering maintenance and industrial cleaning company for
refineries, petrochemical plants and mining processing
plants and counts Caltex, Shell, Exxon Mobil and NZ Refining
Co among its customers. Its returns tend to jump around
depending on the timing of work, Gough said.

Rangatira has
more than $150 million of assets in its portfolio and some
$20 million of funds earmarked for further investments. Last
week its bid of $10 million for a cornerstone 74.86 percent
stake in NZ Experience, owner of Rainbow’s End, was
accepted.

Other recent investments include a 15 percent
stake in Konnect Net, which provides business process
management systems for the insurance and health industries,
and increased its holding in insurer Partners Life to about
9 percent. Other holdings include 50 percent of smallgoods
manufacturer Hellers and 100 percent of Auckland Packaging
Co.

“It is our intention to make additional unlisted New
Zealand investments and we are actively looking to invest in
up to two mid-sized companies that have good growth
opportunities and require additional capital to take them to
the next stage,” said chief executive Ian
Frame.

Rangatira has two classes of shares that trade on
the Unlisted platform, with 67 percent held as class ‘A’
shares and 33 percent held in class ‘B’ shares to
differentiate between charitable and non-charitable
shareholders. Both last traded at
$6.

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